New Optus disclosure puts KPMG under the spotlight once again

KPMG Australia has admitted that confidential Optus information was improperly shared internally during a bid involving rival telecom company Telstra, according to Reuters. 

The admission came during a parliamentary hearing on Friday and supports whistleblower claims that the firm had previously dismissed following internal and external reviews.

Ethics breach exposed

KPMG chairman Martin Sheppard told lawmakers that sensitive Optus information crossed an internal ethical barrier and reached a team that should not have had access to it.

"The Optus, Telstra matter emerged very recently," Sheppard said.

He added that unredacted Optus information had moved "through an ethical divider" when it should not have.

Pressure on KPMG

The latest revelation adds to an ongoing controversy surrounding KPMG's handling of confidential client information.

The firm has already faced allegations that confidential Lendlease board papers were used to support audit bids involving Westpac and Dexus.

The Optus disclosure is expected to intensify scrutiny of the Big Four accounting firm.

Former CEO questioned

Former KPMG Australia chief executive Andrew Yates told the hearing that findings from an investigation by law firm Allens contributed to his resignation last month.

"That was the day I realised that there were things here that could have been found earlier," Yates said.

The audit contract at the centre of the Optus matter was eventually awarded to Deloitte.

Delayed response

Lawmakers also questioned KPMG over delays in informing affected parties.

Lendlease was only notified in May 2025, despite the allegations being raised internally a year earlier.

Lendlease chairman John Gillam described the firm's conduct as a "fundamental breach of trust".

The company has since ended its nearly 70-year audit relationship with KPMG.

Yates admitted he did not inform Optus about the whistleblower complaint and could not recall when Westpac and Dexus were notified.

Governance concerns

The hearing also raised broader questions about the regulation of major accounting firms.

Greens Senator Barbara Pocock accused KPMG of prioritising commercial interests over ethics and questioned whether the partnership model remains effective.

"Is the partnership structure now non-functioning in this circumstance? We are here the second time around, PwC and now you," Pocock asked.

Accountability debate

Labor Senator Deborah O'Neill also challenged the firm's governance and culture.

Yates defended KPMG, saying, "And nor do I see the firm to be full of bad apples. We are a large, complex organisation and we're fallible."

O'Neill argued that the partnership model weakens accountability.

"But the structure you have means everybody is responsible for everything that you do, jointly with you," she said.

Reform calls grow

The latest disclosures are likely to increase pressure for tougher oversight of Australia's major accounting firms.